PayPal has announced a new partnership with micro-investing app Acorns, an initiative which the former says is aimed at helping its users “take better control of their financial lives”.
Under the deal, customers can use PayPal to fund their investment accounts with Acorns, an app-based platform that has become popular with many small investors in the United States.
Once a person links a PayPal account to Acorns, the user can opt for a recurring or one-time investment funded from the PayPal account, according to an announcement Monday.
Also, users can monitor their Acorns account right from within PayPal — online and in the PayPal mobile app — helping them to keep track and manage their savings and investments in real-time.
Acorns, a fintech startup launched in 2014, currently has about 2.4 million people in the United States using its app. Among them, about 1.6 million are said to be active users.
The platform added a PayPal payment function after the global online payment system last year led a US$30 million funding round for the startup.
Under the system, Acorns’ app automatically rounds up PayPal transactions and invests the extra cents in a low-cost, diversified portfolio of exchange-traded funds.
Building on that initiative, PayPal has now added an extra feature that enables users to set up recurring or one-time investments funded from their PayPal accounts.
The new feature began rolling out to select US PayPal customers on Monday, and will be available for all customers in that country by early 2018.
As of the third quarter of this year, PayPal had about 218 million active users. That serves as a huge source of customers for Acorns, bringing about synergy for both companies.
Adapted from an article that appeared in the Hong Kong Economic Journal on Nov 22
Translation by Jonathan Chong with additional reporting
[Chinese version 中文版]
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